Tellurian Says $37.9M Of 10% Senior Secured Notes Due 2025 Will Be Extinguished; Tellurian To Issue 47.9M Shares To Institutional Investor Holding Notes
Portfolio Pulse from Benzinga Newsdesk
Tellurian Inc. has announced that $37.9 million of its 10% senior secured notes due in 2025 will be extinguished. In exchange, the company will issue 47.9 million shares to an institutional investor holding the notes, according to an SEC filing.
December 28, 2023 | 2:36 pm
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Tellurian Inc. is reducing its debt by extinguishing $37.9 million in senior secured notes and will dilute current shareholders by issuing 47.9 million new shares to an institutional investor.
The extinguishment of debt is generally positive as it reduces financial obligations, but the issuance of a significant number of new shares can lead to dilution of existing shareholders' equity. This can negatively impact the stock price in the short term as the market adjusts to the increased share count and potential dilution of earnings per share.
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